How the Lease End-of-Term Inspection Works

Every leased car gets inspected at the end of the term. The bank's inspector documents condition, mileage, and any "excess wear" beyond a contractually-defined standard. If you took over the lease, every dent, scuff, and bald tire becomes your bill. Here's what they're looking at — and what you can do about it.

What "excess wear and tear" actually means

Every lease contract spells out specific tolerances. Common bank standards:

• Tires: minimum 4/32" tread depth (some banks: 3/32"), no sidewall damage, matching brand/size on each axle.
• Body: no dents larger than a credit card; no scratches that penetrate the clear coat; no missing paint.
• Glass: no cracks or chips larger than ~1 inch.
• Wheels: no major curb damage, no missing trim, all alloy/painted finish intact.
• Interior: no rips, burns, stains, or odors. Worn pedals and steering wheel are usually OK as normal wear.
• Mechanical: all dashboard warning lights resolved; no obvious mechanical defects (smoking exhaust, brake noise, fluid leaks).

How the inspection happens

The lease bank's third-party inspection company contacts you 60–90 days before lease-end to schedule. The inspector comes to you (home, work, or dealer) and spends 30–45 minutes:

1. Photographs the car from every angle.
2. Measures tire tread depth at multiple points.
3. Documents any damage with photos and notes.
4. Records the odometer reading.
5. Generates an itemized report estimating "excess wear" charges.

You'll receive the report by email within a day or two. Charges are not final at this point — you have time to fix items before turning the car in.

Common charges and what they cost

• Door ding repair (PDR): \$50–\$150 if you fix it yourself before turn-in; \$200–\$400 if the bank charges you.
• Scratched bumper (paintless touch-up): \$300–\$600 from the bank; \$150–\$300 at a local shop pre-turn-in.
• Single bald tire: \$200–\$350 from the bank; \$120–\$200 at a tire shop.
• Curb-rashed wheel (single): \$200–\$400 to refinish at the bank; \$100–\$200 at a mobile wheel shop.
• Mileage overage: \$0.15–\$0.30 per mile, no way to fix. Drive less or buy out the car.

Strategies to minimize charges

• Get a pre-inspection. Most banks offer one for free 90 days before lease-end. Use it as a heads-up of what'll be charged so you can fix it cheaper.
• Fix damage yourself before turn-in. Always cheaper than the bank's rates.
• Replace tires if borderline. A set of four budget all-seasons (\$400–\$700 mounted) beats \$1,000+ in tire charges.
• Document everything. Take photos when you take possession AND when you turn it in. If the bank tries to charge for pre-existing damage, you have proof.
• Buy out the lease if charges are catastrophic. If you'd owe \$5,000+ in fees, sometimes buying the car (residual + tax) and reselling makes more sense.

Common questions